I am a novice investor, 28 years old. I am interested in learning more, and also taking some financial risk with a small percentage of my discretionary income.
I already have a "solid", medium-risk investment (Vanguard Windsor II), and I intend to keep contributing to that (or a similar) fund over the long term.
But, I am also interested in taking some risk with discretionary income. I believe that emerging markets stand to grow as they are less constrained by their governments (compared to industries which must abide by 1st world regulations). I don't have much hope for the American or European economies short term.
Here is the fund I am interested in:
It is high risk, and has buy and redemption fees. My plan for this fund is to take 50% of my discretionary investment income and funnel it into this fund, with the other half going into less risky investments. I would probably buy in quarterly, and hold on to the investment for the long term.
I also want to buy in when the fund is low. The 1-year average yield is -18.24%, but the fund did well in other years.
I am looking for advice around the following areas:
- What would you look for in a similar investment?
- Is there a reason why an inexperienced investor should not buy this or a similar investment, aside from the risk involved?